Wire Transfer from Overseas

[mxo]

I'm in the US & I received a gift under US$10,000 (~$8,500) recently from a relative overseas via a wire transfer to the local US bank. This gift is a rare occurrence, in preparation for the overseas trip my family is planning for next year.

Some people are advising me that I should take out the exact amount in cash, so it can get explained as a transfer to someone else. I'm thinking that, even though it is under $10,000, it would look suspicious if it ever comes up with a government agency.

Wouldn't it be better to leave it sitting there since it is a gift? If I transfer money to someone else right away, or take out that amount in cash, isn't there a higher chance to have it flagged as a possible money laundering (or worse, terrorism) act?

[Mr. Knowitall]

Why would you want to give the money to somebody else? If you're intent on doing that, I'll take it (), but I don't see how that helps you.

[mxo]

It's not to give to some stranger, but to forward to a close relative.

They are suggesting that to avoid any suspicion from agencies for the money transferred in, but I'm thinking that can potentially raise more questions. I'm thinking, since it is a gift, just leave it in my account. The amount is under $10,000 so I don't know if it is even worth worrying about.

[Who'sThatGuy]

If your intension's aren't illegal, then don't worry about where the money stays. If someone comes knocking, tell them the truth.